An update on deferring VAT and July 2020 self assessment payments

A brief update on deferring VAT payments and the July self-assessment payment:

VAT

The deferral will apply from 20 March 2020 until 30 June 2020.

Who can claim?

All UK businesses are eligible.

How to access the scheme

This is automatic. No application is needed. You simply don’t need to make the VAT payment which would fall due during the above period

Remember this is not free money, you still need to pay it – taxpayers will be given until 5 April 2021 to pay any liabilities that have accumulated during the deferral period.

VAT refunds and reclaims will be paid by the government as normal.

July 2020 self-assessment payment

For Income Tax Self-Assessment, payments due on 31 July 2020 will be deferred until the 31 January 2021.

Who can claim?

You need to be self-employed; this will not apply to anyone else. So if you have a July payment to make which arises from say dividend income, you still need to pay it, though you could apply for “time to pay”.

How to access the scheme

Like for the VAT deferral, this is automatic – no application is required, you just don’t pay.

No penalties or interest for late payment will be charged in the deferral period. You would need to pay the tax in the following January 2021.